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Slater & Gordon hit by £420m Quindell writedown
Slater & Gordon hit by £420m Quindell writedown
This is a duplicate of the Blog Entry made on: 29th February 2016 16:02
This is a duplicate of the Blog Entry made on: 29th February 2016 16:02
The Australian law firm that bought the bulk of Quindell’s businesses has been plunged into crisis after it was forced to write down the assets it acquired from the scandal-hit British company by AUS$814.2m (£420m). Slater & Gordon shares crashed 30.1pc to 58 cents after the firm, which spent £637m on the Quindell assets last May, slumped to a AUS$969.6m first-half pre-tax loss, from a AUS$59.9m profit a year earlier. The stunning loss prompted an apology from S&G’s chairman, John Skippen, to the company’s beleaguered investors, who are threatening the firm with a class action lawsuit. Andrew Grech, the managing director, had offered to quit, Mr Skippen revealed, but the board had refused his resignation to avoid the disruption it would cause while the business fights to avert a collapse.
S&G has been crippled by the huge impairment it has taken on the Quindell businesses it owns, which handle claims linked to road traffic accidents, injuries at work, and noise-induced hearing loss. The law firm’s lenders - National Australia Bank and Westpac - have now given it until the end of April to draw up proposals to tackle its AUS$741.4m of net debts. If the plan fails to satisfy its backers, they will bring forward all of S&G’s debt repayments to March next year. That would cast serious doubt over the law firm’s future as analysts believe the business would not be able to repay its debts.....Read more here
Previous aad news Blog:
Jan 2016:
Quindell owner in debt restructuring talks - Link
Jun 2015:
Quindell under investigation by financial regulator - Link
S&G has been crippled by the huge impairment it has taken on the Quindell businesses it owns, which handle claims linked to road traffic accidents, injuries at work, and noise-induced hearing loss. The law firm’s lenders - National Australia Bank and Westpac - have now given it until the end of April to draw up proposals to tackle its AUS$741.4m of net debts. If the plan fails to satisfy its backers, they will bring forward all of S&G’s debt repayments to March next year. That would cast serious doubt over the law firm’s future as analysts believe the business would not be able to repay its debts.....Read more here
Previous aad news Blog:
Jan 2016:
Quindell owner in debt restructuring talks - Link
Jun 2015:
Quindell under investigation by financial regulator - Link